David Jones shareholders vote in favour of Woolworths takeover

Woolworths's David Jones takeover has cleared a major hurdle, as around 97 per cent of shares were voted in favour of the $2.2 billion offer from South Africa's Woolworths.

Almost 268 million shares were voted in favour of the deal, with just under 9 million against, and nearly 90 per cent of shareholders voting supported the proposal.

Nearly 54 million shares were abstained from the vote - believed to be mostly those owned by retail entrepreneur Solomon Lew.

In April, South Africa's Woolworths offered to buy David Jones for $4 a share - a bid the DJs board backed immediately.

However, the process was held up by Mr Lew.

He amassed a significant minority stake in David Jones in what appeared to be an attempt to force Woolworths to buy out his minority stake in Country Road - the South African retailer owns the vast bulk of Country Road shares, but Mr Lew had been preventing a full takeover of the clothing label.

Woolworths responded by offering a hefty premium for Mr Lew's Country Road shares to buy his acquiescence for the David Jones takeover.

Call for scrutiny on Country Road deal

However, the Australian Shareholders Association's Stephen Mayne says Mr Lew's votes would not have swayed the result even if he had not abstained.

"Even if he had voted against today he wouldn't have scuppered the deal because he would have only lifted the against vote to about 18 per cent," he said.

Despite this, Mr Mayne says regulators should closely look at the side deal.

"I think the question ASIC should be looking at now is whether the Country Road takeover should proceed. I'm surprised ASIC is focussing on whether the DJs takeover should proceed," he said.

"I think there's a bigger issue around whether they should intervene and say maybe there's an issue around that particular deal rather than the main takeover."

David Jones shares set to end trade on Friday

The Woolworths takeover of DJs needed to be backed by at least half of David Jones's shareholders holding at least 75 per cent of shares.

David Jones launched an advertising campaign to rally support from small investors.

However, most large institutional shareholders were already on side, so the deal was always likely to go through as long as Mr Lew did not block it.

With shareholder approval now obtained, the takeover only needs to clear the formality of a court approval, expected to take place on Thursday this week, before David Jones shares being suspended from trade at the close of the market on Friday.

David Jones shareholders can expect to receive their $4 per share payment on Friday August 1.